Exide Industries Q4 results: PAT falls 10% to Rs 255 cr on higher costs

Indian battery maker Exide Industries posted a smaller-than-expected quarterly profit on Wednesday, hurt by high raw material prices and sluggish automotive demand.

The company's standalone profit after tax fell 10.3% year-on-year to Rs 255 crore ($30.1 million) for the three months ended March 31. Analysts, on average, expected a profit of Rs 280 crore, as per data compiled by LSEG.

Revenue from operations rose 3.7% to Rs 4,159 crore, slowing from a 13.2% increase a year earlier, while total expenses jumped 5.6%.  KEY CONTEXT

Exide gets about 69% of its revenue from the automotive segment, according to its latest annual report.

 

Sales of passenger vehicles increased 2.4% in the quarter, compared to a 11.5% increase a year earlier. Two-wheeler sales grew a mere 1.4%, sharply lower than the 24.9% jump reported a year ago.  ALSO READ | Vedanta Q4FY25 results: Profit surges 154% to ₹3,483 cr on higher volumes

Exide's earnings before interest, taxes, depreciation, and amortization (EBITDA) margins fell to 11.2% from 12.9% a year earlier, pressured by higher raw material costs.

"Prices of raw materials such as antimony, have significantly increased in last 6 months," the company said.

Analysts also flagged weak replacement demand for old or worn out batteries, which could weigh on the topline of battery makers.

Exide is the first among its peers to report fourth-quarter earnings.